In a recent clarification aimed at addressing taxpayer concerns, the Goods and Services Tax Network (GSTN) has explained why many taxpayers are noticing a mismatch between Table 7J of GSTR-9 and Table 4C of GSTR-3B for the financial year 2024–25.
According to GSTN, the difference primarily arises because Table 7J of the annual return (GSTR-9) captures only the net Input Tax Credit (ITC) pertaining to the current financial year. In contrast, Table 4C of GSTR-3B for FY 2024–25 may include ITC related to FY 2023–24, which was either claimed or reversed in the current year.
Why the Mismatch Occurs
GSTN explained that Table 7J does not consider the figures reported under Table 6A(1). As a result, taxes or credits carried forward from the previous year are not reflected in the annual return table.
On the other hand, Table 4C of GSTR-3B could contain:
- ITC of FY 2023–24 claimed in FY 2024–25, or
- ITC reversed or re-availed in the current year but relating to the previous period.
This structural difference in reporting leads to variations when taxpayers compare the two tables.
GSTN’s Message to Taxpayers
GSTN has clarified that such differences are normal and expected, especially in cases where businesses report previous year ITC adjustments in the new financial year’s GSTR-3B filings. Since Table 7J captures only the ITC belonging to FY 2024–25, it naturally excludes any figures from earlier years, thereby creating a mismatch with Table 4C.
What Taxpayers Should Do
Taxpayers are advised to:
- Review their year-wise ITC reporting carefully,
- Maintain clear records of ITC claimed or reversed pertaining to prior years, and
- Understand that discrepancies between these tables do not necessarily indicate an error.
With many businesses reconciling their data ahead of annual return filings, the clarification provides much-needed relief and transparency.
Read More: GSTR-9C Table 12B May Trigger ITC Mismatch for FY 2024-25; GSTN Directs Taxpayers to Use Table 13
